Telecom Companies Declare ‘Digital Emergency’ in Pakistan

Telecom

Every industry is being closely watched, which is causing an absolute catastrophe. In the event of a financial crisis, the telecom sector would see its net profit go from $188 million in 2021 to a loss of $287 million by the end of the calendar years 2022 and 2023.

“Digital Emergency” is declared by telecom firms. Although there was a perception that the telecom industry was prosperous, the sector has been declining since 2016.

The 74 percent cost to revenue figure represents an estimate of costs over EBITDA, which is currently at 58 percent, for 2025. If there isn’t any further major deterioration, this prognosis is only valid.

We have faced enormous challenges, and now our survival is at stake. The regulator will not permit a pricing increase in the telecom sector. Pakistan presently has the lowest average revenue per user (ARPU) after a sharp decline. The telecom industry is on the point of collapse in such a scenario, and our foreign owners would not permit us to take on debt to meet our obligations and those of our shareholders.

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